Manila expects over 200,000sqm of new office inventory by end-2026.

A total of 29,100sqm entered the market in Q1.

Manila's office market recorded net absorption of 51,718 square metres in the first quarter of 2026, led by activity in Makati City as IT-BPM and media companies drove leasing demand, according to JLL.

The consultancy said major transactions in Makati included a media firm leasing 3,400 square metres and IT-BPM occupiers taking 3,200 square metres. In Taguig City, demand was led by technology, media and construction companies.

Despite healthy leasing activity, vacancy increased to 14.6%, rising 45.6 basis points from the previous quarter as new supply additions outpaced occupancy gains. The market added 29,100 square metres of office space during Q1, with a further 202,214 square metres scheduled for delivery by the end of 2026.

Average rents held steady at PHP1,088.3 per square metre per month as landlords continued to offer incentives and waive escalation clauses to maintain occupancy. Capital values edged up 0.1% to PHP189,946 per square metre.

JLL expects occupier demand from the IT-BPM, technology and financial services sectors to remain supportive, although incoming supply may place downward pressure on rents and temper investor sentiment.